Monday, June 17, 2019

Fuel Oil News

Kjeld Aabo, Director New Technologies, MAN ES.

Interview: Kjeld Aabo, Director New Technologies, MAN ES

“I think it is very early to project what will be the fuel of the future. I think that it will be much more clear in January 2020 (when the new IMO fuel rules enter force) and we see the direction of fuel costs.”To start, put in perspective the current pressure to reduce emissions in the maritime industry.It all really started at the beginning of the 1990s when the world started discussing that something needed to be done on exhaust gas emissions from marine vessels. We stayed in contact with various regulatory authorities, as we tried to be a part of the conversation in the creation of rules.

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Fuel Futures: Diesel Will Spike on IMO2020

New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.

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APL Halves Fleet Carbon Emissions

APL announced a 47.4% reduction in carbon dioxide emissions per container transported per km in 2018, compared to 2009.The result follows the Environmental Performance Assessment (EPA) of APL’s 2018 carbon dioxide emission data by the global non-profit organization Business for Social Responsibility’s (BSR’s) Clean Cargo Working Group (CCWG). The Clean Cargo EPA data was verified by Lloyd’s Register Group according to the Clean Cargo verification protocol and principles of ISO14064-3:2006 standard.Looking forward to the 2020 Global Sulfur Cap…

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Chevron Readying IMO-Compliant Fuel

Chevron plans to bring an IMO-compliant 0.5% sulphur shipping fuel blend to the market by the end of the third quarter, a company representative said on Wednesday.Ships will be required to use fuels with a sulphur content of no more than 0.5% from the start of 2020, down from 3.5% currently, under International Maritime Organization (IMO) rules aimed at cutting air pollution."If the shipping company is willing to try it out now we can make it available, but not for continuous purchase," Chevron Fuels Technologist Monique Vermeire told Reuters at an industry conference."I think it will be avail

The 15,000 TEU megaboxer MV SAJIR to be converted to methane for operation (©Hapag-Lloyd)

Marine Fuel: World First for Megaboxer MV Sajir

"With the conversion of SAJIR, we are the first shipping company worldwide to convert a container vessel of this size to natural gas propulsion."  Richard von Berlepsch, Managing Director Fleet Management at Hapag-LloydIn its more than 170 years of existence, the Hamburg-based Hapag Lloyd  has used all kinds of solid and liquid fuels to generate energy for the propulsion of its ships. And now the shipping company has announced that it intends to convert the propulsion system of its 15…

Image: BP

Bunker Fuel Mkt to Reach $273bln by 2025

The global bunker fuel market, which was valued at $137.21 billion in 2017, is expected to reach $273.05 billion by 2025, growing at a CAGR of 9.4% during the forecast period, 2018-2025.Increased offshore hydrocarbon exploration activities in offshore destinations and growth in marine trade due to rise in import-export activities contribute to the overall growth of the global bunker fuel market, said a report published by Allied Market Research.However, stringent government regulations…

File Image: AdobeStock / © 14KT Gold

Marine Fuel Rules to Disrupt Markets for 1-5 years

The marine industry's January 2020 shift to using very low sulfur fuel oil (VLSFO) to power ships worldwide will launch a one- to five-year disruption in oil and refined products markets, according to a study released Thursday by Boston Consulting Group.The International Maritime Organization (IMO)'s mandated switch will require fuels to have a sulfur content below 0.5%, compared with 3.5% now. It aims to improve human health by reducing air pollution from sea-going vessels.The changeover may increase profits for refiners, especially on the U.S.

Photo: Jan De Nul Group

Jan De Nul Launches Low Emission Vessel

Jan De Nul Group launched its fourth Ultra-Low Emission vessel last week in Singapore. It concerns the 6,000 m³ Trailing Suction Hopper Dredger Sanderus built at the Keppel Offshore & Marine shipyard.This green vessel is the first of two identical medium-sized hopper dredgers under construction at Keppel O&M’s shipyard in Singapore, fitted with a two-stage filtering technique for exhaust gases.In total, Jan De Nul Group designed six Ultra-Low Emission vessels (ULEvs) for its fleet: five Trailing Suction Hopper Dredgers and one Offshore Jack-Up Installation Vessel, the Voltaire.

Picture Credit: Tom Fisk/Pexels

Onboard Fuel Compatibility Testing is Growing

Parker Kittiwake is witnessing an increase in demand for onboard fuel compatibility testing.The trend reflects the urgency in the market as shipowners and operators take a more deliberate and proactive approach to mitigating the risks of potential marine fuel oil incompatibility and stability issues associated with the impending 2020 global sulphur cap regulation.With the majority of shipowners expected to opt for very low sulphur fuels of 0.5% or less to achieve compliance, the shipping industry is seeing a rise in new blended fuels appearing on the market.

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Diesel Traders: Shortage is Coming

Gasoil traders expect the middle distillates market to stay well supplied until almost the end of 2019 before swinging into deficit with the introduction of new maritime fuel regulations.Calendar spreads for low-sulphur gasoil delivered to Europe's Amsterdam-Rotterdam-Antwerp hub are currently in contango through until October before shifting to backwardation from November onwards.In futures markets, contango structures, where future contract prices are higher than front-month prices, are associated with expectations of adequate or rising inventories.

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IMO 2020: Exxon Mobil Projects 25% Decline in High-Sulfur Fuels

Exxon Mobil Corp expects high-sulfur fuel oil demand to fall 25 percent by 2025, as a new set of emission regulations from the International Maritime Organization capping sulfur content in shipping fuel at 0.5% kicks in in 2020, a top-level official at the U.S. oil and gas company said on Monday.The International Energy Agency has forecast high-sulfur fuel oil demand to fall 60 percent next year, while marine gas oil demand to more than double.Exxon's forecast comes as its refining business is struggling to find enough heavy crude to make fuel oil and other distillates, in the face of U.S.

File Image: An Exxon Refinery (CREDIT Exxon)

Exxon: HSFO Demand to Decline 25%

Exxon Mobil Corp expects high-sulphur fuel oil demand to fall 25 percent by 2025, as a new set of emission regulations kick in next year, a top-level official at the U.S. oil and gas company said on Monday.A new 0.5 percent sulphur content cap in shipping fuel set by the International Maritime Organisation (IMO) will come into effect in 2020.The International Energy Agency has forecast high-sulphur fuel oil demand to fall 60 percent next year, while marine gasoil demand to more…

The CMA CGM refueling operation (CREDIT: GoodFuels Marine

CMA CGM Boxship Refuels with Bio-Fuel

Previously announced IKEA, CMA CGM, GoodShipping Program and Port of Rotterdam pilot celebrates milestone moment in industry-first partnership.IKEA Transport & Logistics Services, CMA CGM, the GoodShipping Program and the Port of Rotterdam announced the successful refueling on Saturday, March 23 of the CMA CGM White Shark with sustainable marine bio-fuel oil.The test, which represents a major step for the decarbonization of ocean freight, saw the companies work together in a first-of-its-kind partnership for the shipping industry.

Image Credit: Goodfuels / Varo

VARO, GoodFuels: Bio Fuels in Rotterdam

VARO Energy subsidiary REINPLUS FIWADO Bunker and GoodFuels have extended their partnership to improve availability of bio fuel oil (BFO) to deep sea vessels leaving from Rotterdam.The new deep sea proposition, which will help to improve the sustainability of the segment, is based on extending the availability of GoodFuels’ Bio Fuel Oil, which the company launched in Autumn 2018.The new partnership will see VARO help scale the sourcing, production, blending and distribution of GoodFuels Bio Fuel Oil across the ARA region.

Photo: Stena Bulk

Stena Bulk to Install EGS on 16 Tankers

Stena Bulk has made a major investment in scrubbers and before January 2020 16 units will be installed. 10 IMOIIMAXes, 5 Suezmaxes and one of standard MR will be equipped with the after-treatment system. The total investment is worth 55 MUSD, including equipment, installation and time out of service. Payback time of investment is between 1,5 and 2,5 years which has already been secured by hedging the fuel spread.By installing scrubbers on board, Stena Bulk will comply with the upcoming IMO Sulphur cap regulation…

CMA CGM Group vessel © CMA CGM

Partnership to Test Sustainable Marine Bio-Fuel Oil

IKEA Transport & Logistics Services, CMA CGM, the GoodShipping Program and the Port of Rotterdam have announced they will cooperate in a first of its kind partnership to test and scale the use of sustainable marine bio-fuel oil. The test will commence with a landmark bunkering of the marine bio-fuel oil on a CMA CGM container vessel on March 19th, representing a major step towards the decarbonization of ocean freight.The test is being facilitated by the GoodShipping Program, a sustainable initiative dedicated to decarbonizing ocean freight…

Photo: Robert Allan

A Second Z-Tech 6500 Tug for ICDAS

In mid October 2018, ICDAS Turkey completed construction of its second Z-Tech 6500 tug, the KARA YUSUF-2, which will operate in Çanakkale Turkey. After successful construction and operation in 2011 of the ICDAS-19, the first Z-Tech 6500 tug of its fleet, ICDAS decided to build a second one.The deck machinery comprises a hydraulic towing winch DWF 35x130H on the bow, spooled with 200 m of Ø56 tow line. An independent anchor windlass is provided on aft deck. Rescue boat and davit…

Tanker with Bilfinger Scrubber. Photo: Bilfinger SE

Bilfinger Sees Huge Potential in Scrubber Market

The international maritime shipping industry is increasingly using emission-reducing flue-gas desulfurization systems provided by Bilfinger, claimed the German engineering company.Following additional orders in recent months, the industrial services provider now has contracts for its scrubber technology with a value in excess of €100 million on its order books, said."This brings a total of 70 vessels belonging to national and international shipping companies in line with stricter future environmental requirements imposed by the International Maritime Organization (IMO) and the European Union…